US Private Payrolls Come Weak, Way Below Expectation In July

US private payrolls increased 330,000 in July, coming weak and way below market expectations, according to ADP Research Institute's national employment report released Wednesday.

Analysts expected a rise of 695,000, while the figure in June was revised down from 692,000 to 680,000.

Small and medium businesses added 91,000 and 132,000 jobs, respectively, while large businesses added 106,000 in July.

"The labor market recovery continues to exhibit uneven progress, but progress nonetheless. July payroll data reports a marked slowdown from the second quarter pace in jobs growth," ADP chief economist Nela Richardson said in the report.

"The slowdown in the recovery has also impacted companies of all sizes. Bottlenecks in hiring continue to hold back stronger gains, particularly in light of new COVID-19 concerns tied to viral variants," she added.

Richardson said the leisure and hospitality sector is the fastest growing industry for the fifth straight month though gains in the sector have softened.

The US government's nonfarm payroll report will be released Friday and analysts expect it to show an increase of 880,000 jobs in July, after it rose 850,000 in June. -